Schlumberger and Weatherford to Form OneStim Joint Venture

New company targets North America unconventional resource development

March 24, 2017 04:45 PM Eastern Time

HOUSTON--(EON: Enhanced Online News)--Schlumberger and Weatherford today announced an agreement to create
OneStimSM, a joint venture to deliver completions products
and services for the development of unconventional resource plays in the
United States and Canada land markets. The joint venture will offer one
of the broadest multistage completions portfolios in the market combined
with one of the largest hydraulic fracturing fleets in the industry.

Schlumberger and Weatherford will have 70/30 ownership of the joint
venture, respectively. The transaction is expected to close in the
second half of 2017, and is subject to regulatory approvals and other
customary closing conditions. Under the terms of the formation
agreement, Schlumberger and Weatherford will contribute all their
respective North America land hydraulic fracturing pressure pumping
assets, multistage completions, and pump-down perforating businesses.
Weatherford will also receive a one-time $535 million cash payment from
Schlumberger.

Schlumberger will manage the joint venture and consolidate it for
financial reporting purposes.

Schlumberger Chairman and CEO Paal Kibsgaard commented, “The
joint-venture creates a new industry leader in terms of hydraulic
horsepower and multistage completions technologies in North America
land, which through its scale offers a cost-effective and highly
competitive service delivery platform. OneStimSM is uniquely
positioned to provide customers with leading operational efficiency and
best-in-class hydraulic fracturing and completions technologies, while
at the same time significantly improving full-cycle shareholder returns
from this market.”

Weatherford Chairman William E. Macaulay said, “The OneStimSM
joint venture creates a leading unconventional products and services
provider in North America land. This transaction will allow Weatherford
to deleverage its balance sheet while retaining a significant exposure
to the unconventional market. This transaction was unanimously approved
by the Board of Directors and will create significant value for both
parties.”

About Schlumberger

Schlumberger is the world’s leading provider of technology for reservoir
characterization, drilling, production, and processing to the oil and
gas industry. Working in more than 85 countries and employing
approximately 100,000 people who represent over 140 nationalities,
Schlumberger supplies the industry’s most comprehensive range of
products and services, from exploration through production, and
integrated pore-to-pipeline solutions that optimize hydrocarbon recovery
to deliver reservoir performance.

Schlumberger Limited has principal offices in Paris, Houston, London and
The Hague, and reported revenues of $27.81 billion in 2016. For more
information, visit www.slb.com.

About Weatherford

Weatherford is one of the largest multinational oilfield service
companies providing innovative solutions, technology and services to the
oil and gas industry. The Company operates in over 90 countries and has
a network of approximately 900 locations, including manufacturing,
service, research and development, and training facilities and employs
approximately 30,000 people. For more information, visit www.weatherford.com and
connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.

This press release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. The
opinions, forecasts and projections regarding the expected benefits of
the proposed transaction; the expected timing of the completion of the
transaction; the parties’ ability to complete the transaction
considering the various regulatory approvals and other closing
conditions; future opportunities for the joint venture and its products
and services; and any other statements regarding the parties’ or the
joint venture’s future expectations, beliefs, plans, objectives,
financial conditions, assumptions or future events or performance, are
forward-looking statements within the meaning of the federal securities
laws. These statements are subject to, among other things, satisfaction
of the closing conditions to the proposed transaction, the risk that the
proposed transaction does not occur, negative effects from the pendency
of the proposed transaction, the ability to realize expected benefits
from the proposed transaction, the timing to consummate the proposed
transaction, and other risk factors contained in Schlumberger’s and
Weatherford’s most recent Forms 10-K as well as each company’s other
filings with the SEC available at the SEC’s Internet site (http://www.sec.gov).
Actual results may differ materially from those expected, estimated or
projected. Forward-looking statements speak only as of the date they are
made, and the parties undertake no obligation to publicly update or
revise any of them in light of new information, future events or
otherwise.

Recent Stories

HOUSTON--(EON: Enhanced Online News)--Schlumberger Limited (NYSE:SLB) will hold a conference call on January 19, 2018 to discuss the results for the fourth quarter and full year ending December 31,... more »

HOUSTON--(EON: Enhanced Online News)--Schlumberger Limited (NYSE:SLB) will hold a conference call on October 20, 2017 to discuss the results for the third quarter ending September 30, 2017. The con... more »